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On Thursday, Truist Securities maintained a Buy rating on Salesforce.com shares (NYSE:CRM) with a steadfast $400.00 price target. The firm’s analysts highlighted the company’s robust fourth-quarter performance, which surpassed expectations despite significant foreign exchange headwinds. The results included better-than-anticipated margins and cash flow, with an impressive gross profit margin of 76.94%, as well as a 120% year-over-year increase in Data Cloud and AI annual recurring revenue. Salesforce’s Sales and Service Cloud segments continued to exhibit double-digit growth, contributing to the company’s strong 9.53% year-over-year revenue growth. According to InvestingPro data, Salesforce maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.
The analysts noted that Salesforce has secured 3,000 new deals for its Agentforce product, including transactions exceeding a million dollars. These deals not only bolster the company’s own growth but also stimulate demand for other cloud applications and contribute to the Data Cloud business. The optimistic demand signals were recognized as a driving factor for the company’s sustained growth, reflected in its robust $37.19 billion trailing twelve-month revenue. For deeper insights into Salesforce’s financial health and growth metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
However, the revenue outlook provided by Salesforce was more conservative than Street estimates, primarily due to the impact of foreign exchange fluctuations and underperformance in legacy products. Despite this, Truist Securities advises investors to consider buying the stock on weakness, noting a 6% after-hours decline, as they believe the company’s growth trajectory remains positive. Based on InvestingPro’s Fair Value analysis, Salesforce appears to be trading near its fair value, with analyst targets ranging from $243 to $442 per share.
Looking forward, Truist Securities suggests that Salesforce’s growth and profit/cash flow narrative will support better capital allocation decisions. With a strong levered free cash flow of $11.87 billion and operating with a moderate debt level, the company demonstrates solid financial management. The firm regards Salesforce as a core large-cap holding and a credible player in the artificial intelligence space, encouraging investors to maintain confidence in the company’s prospects as it transitions from fiscal year 2026 into fiscal year 2027.
In other recent news, Salesforce has reported several significant developments. The company recently announced its fourth-quarter fiscal year 2025 results, revealing that revenue performance met expectations when adjusted for currency fluctuations and exceeded profit estimates due to increased operational efficiency. Salesforce’s Current Remaining Performance Obligation (CRPO) growth reached 11% in constant currency, surpassing the forecast of 9%, driven by stability in cloud services and early renewals. The Data Cloud and Artificial Intelligence Annual Recurring Revenue (ARR) saw a year-over-year increase of approximately 120%, reaching $900 million, indicating robust growth in these areas.
Analysts have adjusted their price targets for Salesforce, with Piper Sandler and Scotiabank (TSX:BNS) reducing their targets to $400, while maintaining Overweight and Sector Outperform ratings, respectively. KeyBanc Capital Markets, however, maintained its $440 target, citing expectations for fundamental improvements throughout the year. Raymond (NSE:RYMD) James also adjusted its price target to $375 but kept a Strong Buy rating, highlighting Salesforce’s market leadership and AI growth.
Salesforce’s product Agentforce has gained traction, with over 3,000 paid customers, although its impact on core cloud service sales cycles has raised some concerns. The company’s fiscal year 2026 guidance was conservative, reflecting recent changes in the CFO position, but there is potential for upside if Agentforce continues to drive broader platform adoption. These developments underscore Salesforce’s strategic focus on expanding its cloud and AI capabilities, which may support its financial outlook.
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